Yesterday, the steel sector hit a deep correction, down 4.17 per cent, well above the Shanghai composite index of 0.99 per cent. Steel, such as baosteel, wuhan steel and angang steel, became the dominant force in the steel sector"s decline. Industry insiders say that the steel sector"s correction has nothing to do with the fundamentals of the steel industry. Steel prices did not fluctuate significantly yesterday.

"There is no change in the fundamentals of the iron and steel industry. Yesterday, steel bellwether baosteel, wisco, angang, take the lead in driving the whole steel plate, the main reason is that repair, of course, there are market miscalculation."

Citic securities (61.29, 1.16, 1.86%, right) steel analyst zhou xizeng in an interview with reporters said that since this year the market adjustment, the adjustment of steel plate is not large, as the depth of the other plate adjustment, the steel stock valuation advantage is weakened, so yesterday can only be seen in deep callback. And has published annual report LingGang, anyang iron and steel (10.35, 0.51, 4.70%, right), xining special steel (18.86, 1.73, 8.40%, right) as well as the cultivation of four steel company"s performance, are rising. Among them, the shares of south steel (20.99, -1.09, -4.94%) were up 163.93% year on year in 2007. Overall, the results were good.

Reporters noted that 32 only in iron and steel shares yesterday, in addition to the two suspension, only long force (10.07, 0.06, 0.60%) shares a 0.60% rise, the rest of the 29 green only. The steel cap fell more than seven points in the session, down 4.69 per cent at the close. Wuhan steel closed down 6.29 per cent, while anshan fell 5.56 per cent. Tang steel, which clarified the concept of venture capital, fell off at one point.

Guosen securities iron and steel industry analyst zheng dong said that the iron and steel stocks amplitude adjustment is not too much reason, mainly is the price comparison effects, there is no change in the fundamentals of the iron and steel industry.

Orient securities iron and steel industry analyst Yang b f.effects think, the iron and steel industry in the first quarter performance is better than the fourth quarter of last year, and results in the second quarter of this year is better than in the first quarter. Yesterday"s adjustment clearly broke the fundamentals of the steel industry.

Joint metal mesh steel channel, a senior analyst at ping thinks, yesterday, on the spot market, east China steel prices were slightly down 50 yuan/ton, while the northern steel prices rose slightly. It should be said that the price of steel has not fluctuated much, and it has not been so influential in the steel sector. Now the market appears to be concerned about the price of steel, which is now at a high price, and steel stocks will rise before the start of the consumer season in March and April. Of course, the next step is to look at the digestive power of the market.

Steel case similar to some 2005 this year, and in 2005 the market eventually did not accept steel prices rise, baosteel have their valuation didn"t stop the 8 - steel prices plunged in September.

Domestic iron and steel industry, a senior analyst at xiang-chun xu said, 05 slump in steel prices has an important reasons: the international steel prices first to reduce the price, finally to domestic steel market. This year"s rise in steel prices is a cost push.